Kerala's Financial Relief Strategy for Landslide Victims Outlined by Centre

The Union government informed the Kerala High Court that loans for Wayanad landslide victims will not be waived but rescheduled or restructured under RBI guidelines. This decision follows a special meeting chaired by Chief Minister Pinarayi Vijayan and aims to provide financial relief, including a one-year moratorium.

The Union government has clarified to the Kerala High Court that there will be no waiver of loans for those affected by last year's landslides in Wayanad. Instead, the loans will be rescheduled or restructured according to the RBI's Master Directions on Natural Calamities.

This clarification came in an affidavit filed in response to a query from the High Court questioning whether loans for affected individuals could be waived. The Union Finance Ministry detailed that the State Level Bankers' Committee (SLBC) Kerala convened a special meeting on August 19 last year. The meeting, attended by Chief Minister Pinarayi Vijayan, resolved to implement relief measures as directed by the RBI's guidelines.

Under the RBI's directions, financial relief in the wake of a natural calamity includes restructuring existing loans with a one-year moratorium and the offering of new loans. The Centre presented this plan during a public interest litigation hearing initiated by the High Court, focusing on disaster prevention and management in Kerala following the devastating landslides in the Mundakkai and Chooralmala regions.

(With inputs from agencies.)